Strategy Buys Bitcoin Worth $110M, Pushes Holdings to 582,000 BTC

Strategy has added 1,045 more BTC to its already massive treasury. This news comes from a recent U.S. Securities and Exchange Commission filing. With this latest purchase, the Nasdaq-listed firm continues to lead the charge among public companies embracing Bitcoin as a long-term asset.

Strategy Nearly Holds 3% of Bitcoin Fixed Supply

As shared in an X post, Strategy bought 1,045 BTC for $110.2 million between June 2 and 8 at an average price of $105,426. This brings its total holdings to 582,000 BTC, worth over $62 billion. The company has spent $40.8 billion overall, with an average cost of $70,086 per coin. 

The company now has about $21 billion in unrealized gains and owns almost 3% of Bitcoin’s total supply. Strategy keeps buying Bitcoin regularly. Just before the latest purchase, it bought 705 BTC for $75.1 million between May 26 and June 1, at an average price of $106,495. 

Chairman Michael Saylor has also hinted at further Bitcoin buys.

Strategy Funds Bitcoin Latest Buy With Preferred Stock 

Strategy paid for its recent Bitcoin buys by selling two types of preferred stock: STRK and STRF. Last week, it sold 626,639 STRK shares for $66.4 million and 432,679 STRF shares for $45.8 million.

The company still has $20.6 billion worth of STRK and $2 billion of STRF left to sell. It did not sell any of its regular MSTR shares last week, though $18.6 billion is still available under that plan.

Strategy’s preferred stock programs are part of a larger blueprint it calls the “42/42” plan. This plan aims to raise $84 billion by 2027 to buy more Bitcoin. This plan initially started as “21/21,” with a $42 billion goal, but was doubled later. 

Last week, Strategy also launched a new stock, STRD, which pays a 10% yearly dividend. 

STRD is non-convertible and non-cumulative. In contrast, STRK is a convertible stock with an 8% fixed annual dividend, while STRF is non-convertible and offers a 10% cumulative dividend.

A Trend Other Companies Are Following

Strategy is not alone in building a bitcoin treasury. A total of 144 companies have adopted this model, with 114 of them publicly traded. Newer entrants include Tether-backed Twenty One, Trump Media, GameStop, and Basel Medical group, joining earlier adopters like Metaplanet and Semler Scientific.

Analysts at Bernstein believe these companies, led by Strategy, could collectively add $330 billion in Bitcoin over the next five years. They see a more crypto-friendly U.S. government as a potential driver of this trend.

Despite some investor concerns, the Strategy is doing well. Its market cap is $102.4 billion, and it has low debt with no big payments due until 2028. MSTR stock rose 1.5% on Friday to $374.47 and was up 2.3% Monday morning.